Does Washington Really Matter?

Investor behavior suggests that government dysfunction is a sideshow to other variables, writes Bessemer Trust's chief investment officer.

The 16-day government shutdown and threat of U.S. default cost the U.S. economy billions of dollars, sharply depressed business and consumer confidence, and dented America's political and financial credibility with the world.

Yet cyclical assets are stronger – it appears investors are saying with their capital that the government dysfunction, while notable and depressing, is a sideshow to other variables.